Cowen Bullish On Seres Therapeutics Inc (MCRB) Following Initiation Of Phase 2 Clinical Study In Multiply Recurrent Clostridium Difficile Infection

Seres Therapeutics Inc (NASDAQ:MCRB) are rising over 30%, as of this writing, after the drug maker announced plans to initiate a new SER-109 Phase 2 clinical study (ECOSPOR III) in patients with multiply recurrent Clostridium difficile (C. difficile) infection. The ECOSPOR III study design was finalized following a positive Type B meeting with the FDA.

Subsequently, Cowen analyst Ritu Baral reiterated an Outperform rating on shares of Seres Therapeutics, without providing a price target.

Baral commented, “Based on KOL feedback, we believe the C. Diff cytotoxin assay to be the most precise diagnostic assay. Seres also believes some patients were underdosed in the prior trial, based on additional analysis of Ph1/2 dosing cohorts […] We are encouraged that the FDA has agreed that the new trial may qualify as a pivotal study. The trial must show a persuasive clinical effect and address FDA requirements, including an adequately sized safety database and CMC parameters. We note Zinplava was approved with only a 11% difference between active and placebo in primary C.Diff. patients. So, the margin to show a persuasive clinical effect in multiply recurrent C.Diff. patients may be even smaller.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ritu Baral has a yearly average return of 9.5% and a 44% success rate. Baral has a -39.5% average return when recommending MCRB, and is ranked #398 out Cof 4545 analysts.

All the 6 analysts polled in the past 12 months rate Seres stock a Buy. With a return potential of 37%, the stock’s consensus target price stands at $16.60.


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